- GBP/JPY prints four-day uptrend, stays mildly bid around two-week high.
- MACD prints most bullish signals in five weeks, sustained trading above 200-DMA also favor buyers.
- Descending trend line from early February, 50-DMA challenges upside moves.
GBP/JPY remains on the front foot around 154.40, up 0.08% during the four-day winning streak to Wednesday’s Asian session.
In doing so, the yen cross justifies the early-week breakout of the 200-DMA, as well as the bullish MACD signals, to stay firmer around a fortnight high.
However, a downward sloping trend line from February 10 and the 50-DMA, respectively near 154.70 and 155.10, test the GBP/JPY bulls.
Also acting as an upside filter is the monthly high near 155.25.
Meanwhile, pullback moves remain elusive beyond the 200-DMA level of 153.33.
Following that, the 61.8% Fibonacci retracement (Fibo) of December-February upside and the monthly low, close to 152.45 and 151.00 in that order, appear as tough nuts to crack for GBP/JPY bears.
Overall, GBP/JPY is ready for further upside but a bumpy road to the north may test the bulls.
GBP/JPY: Daily chart
Trend: Further upside expected